The Keystone Pipeline: How Crony Capitalism is Ruining Energy Independence
The Keystone XL Pipeline was supposed to be built from oil-rich Alberta, Canada through the shale fields of North Dakota to the refineries in the Gulf Coast, traversing the continent and creating jobs everywhere it passed through.
But the Obama administration blocked it for political reasons. At first, it was hard to tell if they were doing the bidding of the environmentalist lobby, or if they sincerely believed it was the wrong decision to make. Well, it’s all settled now.
It was neither. Instead, it was the President Obama’s contribution to Warren Buffett’s retirement fund. It turns out that Buffett’s company, Berkshire Hathaway, owns the railway company that ships around 130,000 barrels of oil per day out of North Dakota, according to the AP.
“There is no question that oil by rail or truck is much more dangerous than a pipeline,” said a representative of the Sierra Club. So why would Obama oppose it, if even far left environmentalists think it’s safer than the current arrangements? Because, first and foremost, this President wants to run a Command Economy. He wants to choose winners and losers. Since the EPA has grown to such monstrous power, the executive branch can rule that section of the economy by decree, once Congress passes them a slush fund to spend as they see fit. Since the green energy cabal is run by fellow leftists, it just so happens that some of his friends and political allies will stand to gain from all the “Green Energy Stimulus.” It’s totally not a pattern, guys.
Oh wait. Didn’t that happen with Solyndra, too? What about when the Obama administration bought up the Chevy Volts?
No, there’s no trend here. I mean, LightSquared certainly didn’t have any Obama… allies… Oh. Hm.
How about BrightSource Energy? I mean, they could totally get a loan from the government even if Robert Kennedy, Jr.’s investment firm wasn’t the majority stockholder. It wasn’t like three months before the bailout, BrightSource’s Chairman, John Bryson, was nominated to be Secretary of Commerce.
Oh, sorry, it is true. BrightSource’s majority stockholder is a Kennedy-run company. Their former Chairman is now the Secretary of Commerce.
Now that we’ve established the Administration’s tendency to throw good money after bad in their longing for control of the economy, let’s transition back to the Keystone Pipeline. Canada, the origin point for the pipeline, (Full Disclosure: I am Canadian) is one of America’s most stalwart allies, internationally. Canada also has the third largest proven oil reserves in the world, behind only Saudi Arabia and Venezuela. Prime Minister Stephen Harper has tried and tried to get the Obama Administration to allow the construction of the pipeline, but has recently begun to signal that Canada won’t wait for the Keystone Pipeline forever. China, India, and other developing nations desperately need to find a new source of oil, and the Canadian oil sands could be their answer. The proposed Northern Gateway Pipeline would run from Alberta to the West Coast of British Columbia, around 1/6 the distance of the Keystone Pipeline. It’s easier, but it’s not Harper’s first choice. His first choice was to offer it to our closest friend, but they turned it down.
So now, we are at a crossroads.
America has finally found a source for all of it’s energy needs for the next 70-100 years, and it’s completely controlled by a friend. While not true energy independence, as it is still technically foreign oil, America could finally stop sending billions of dollars to countries that hate every ideal that America stands for. American and Canadian jobs in high-salary industries would last nearly another century, and Iranian control of the Strait of Hormuz would stop being a deathblow to the American economy.
Or, you can reward your political allies, spit in the face of your neighbour and trade partner, turn down thousands of potential jobs, and be constantly under threat of an OPEC shutdown.
President Obama, the choice is yours. Choose wisely.
Luke Stibbs :: University of the Fraser Valley :: Maple Ridge, British Columbia :: @LukeStibbs
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I still think a refinery in ND would be more beneficial than a pipeline to the coast. Isn’t the pipeline going to be privately owned? If so how do they imminent domain the private land that the pipeline will go through?
You just don’t get it, do you? You either refuse to see the facts, or deliberately construct articles that do nothing but contribute to strife.
Being a Canadian, I would expect you to be more aware of the facts around this issue, but to write an article such as the one I just read, you are not. That’s too bad.
Keystone XL was to ship oil to Gulf refineries to prepare for export. What’s so hard to understand about that? Do you think I am lying? You haven’t done the research then, while I have.
This oil would do nothing to reduce American dependence on imported oil, since it was not to be used by Americans, but was to be sold to the highest bidder on the world market. For this reason I am VERY HAPPY that Obama finally did something I agree with.
I have posted my reference materials for the above assertions in previous comments on TCC and other places. If you are unable to find them, or don’t like to use Google, I can get them again.
You also would be well-served to read what Nebraska natives think of the proposed pipeline and the whole history of their dealings with the Canadian company charged with securing the rights through their land for the pipeline.
Transpartisan Politics on the Plains | The Nation
Long before the Occupy movement swept the country—more than two years ago—a revolt began in one of the reddest states in America. Farmers and ranchers in Nebraska, many of them longtime conservatives, got angry about corporate influence on a single issue that has since captivated the entire state and upset national politics: the Keystone XL pipeline.
…
http://www.thenation.com/article/165975/transpartisan-politics-plains?rel=emailNation
I would hope your next article is more factual, informative and less politically motivated. Politics suck.
So Keith,
Here’s the thing. You may be right, that at first, the Keystone Pipeline may be used for export. But guess what. In case of emergency, say…Iran shutting down the Straits of Hormuz, or an OPEC embargo; all of that Keystone Oil can be used domestically. Right now, there isn’t enough domestic oil production to meet domestic oil use. If Alberta’s oil fields can be fully developed, Canada can produce enough oil to keep North America running without a catastrophic increase in price.
So…yeah. That’s why the pipeline is important. It makes energy independence possible.
I can see your point. Thanks for commenting. I just came to add this story I just read on GasBuddy:
Unions with a substantially larger membership base are supporting the president’s environmental caution, despite partisan outcry.
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The Keystone XL would require a construction workforce of between 5,000 and 6,000, according to documents filed with the State Department. But recent full-page newspaper ads placed by the U.S. Chamber of Commerce put the jobs number at 20,000. Others, including House Speaker John Boehner (R-Ohio), have claimed the count is 100,000 or more.
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http://www.truth-out.org/membership-unions-supporting-obama-keystone-rejection-outnumbers-those-against/1328718556
This updating of TCC is not out of the bug-infested woods yet. I’ve gotten no emails lately, like ones I used to get to tell me there is a new comment. I guess I was spoiled by the effectiveness of the old TCC. I liked having time stamps on the comments, too.
Another story read just now from GasBuddy:
In a hearing to mark up Republican legislation to expedite the Keystone XL tar sands pipeline, Rep. Mike Doyle (D-PA) accused the foreign company TransCanada of misleading the American public that the pipeline would be built with American steel.
…
The steel being used comes from the same Indian manufacturer behind the original Keystone pipeline, which has already seen 12 spills in one year, possibly because of defective steel.
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http://thinkprogress.org/green/2012/02/07/420802/rep-mike-doyle-i-dont-believe-theres-a-lick-of-us-or-canada-steel-in-keystone-xl-pipeline/
By forcing the White House to make a decision on the politically and environmentally-toxic Keystone XL pipeline as part of an agreement reached in December to extend the payroll tax cut, Republicans are being lambasted by environmental groups for undercutting the federal environmental review process.
Now a whistleblower is claiming that the company overseeing the development of the proposed project, TransCanada, also has a track record of undercutting quality at the expense of the environment — further calling into question the decision by Congress to prevent a new federal environmental impact study for Keystone XL.
…
http://thinkprogress.org/romm/2012/01/03/396520/pipeline-inspector-whistleblower-keystone-xl-pipeline-disasterq/
Your friendly scribe,
starduster
http://totherow.tripod.com/
It will create jobs.
That’s about all that can be said for sure about the employment potential of the controversial Keystone XL pipeline.
But how many jobs? For how long? And what and where will they be?
With those questions, things get more complicated in a hurry. And because the line would cross nine western South Dakota counties, the number of jobs likely to be created is a national issue gone local.
…
http://rapidcityjournal.com/news/local/conflicting-numbers-emotions-cloud-keystone-xl-jobs-debate/article_7d44c024-552b-11e1-9d7e-0019bb2963f4.html
One of the comments:
tipimakr said on: February 12, 2012, 9:34 am
I was one of those 2,580 workers that built the pipeline when it came through Aberdeen, which means I was one of the 282 State residents who got hired back then. But I am not one of the six remaining permanent employees left behind by this multi-million dollar project, so who is really not telling the truth here? I don’t even think NOem or Thune were in high school yet when all this happened, so what can they truthfully tell us without experiencing the times? The horrible truth is: The oil is not destined to be used by Americans is it? The oil will not help reduce our rising gas prices will it? The key word to this whole article is “the investors” which says it all
…
Your friendly scribe,
starduster
http://totherow.tripod.com/
TransCanada Corp. (TRP)’s Keystone XL oil pipeline, heralded by supporters as a major job creator, will add few permanent positions once the $7 billion project is built.
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The company says some of the steel will be made in Canada and India.
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The pipeline will support 127 permanent jobs, she said.
…
The pipeline will require more than 800,000 tons of 36-inch carbon steel pipe, about half of which will be produced outside of the U.S., Skinner said. TransCanada has contracted with Mumbai, India-based Welspun Corp Ltd (WLCO), India’s second-biggest producer of pipes, and Moscow-based Evraz Plc, a Russian steelmaker, for steel pipe.
Evraz will make pipe for Keystone XL at its mills in Canada, according to the Cornell report. Welspun will probably make pipe in India for final processing at its plant in Arkansas, an arrangement that allows TransCanada to state that about 75 percent of the pipe for the U.S. portion of the project will be purchased from North American plants, according to the Cornell report.
…
http://www.bloomberg.com/news/2012-02-13/keystone-s-thousands-of-jobs-fall-to-20-when-pipeline-opens-1-.html
Your friendly scribe,
starduster
http://totherow.tripod.com/
Groups Cry Foul as TransCanada Continues to Bully Landowners Despite Denial of Pipeline Permit – Texas Private Property Rights an Ongoing Issue for Keystone XL Pipeline
Houston, TX – Feb. 13 a new statewide coalition of groups and advocates for private property rights has announced its support for landowners along the path of the Keystone XL pipeline in Texas. The groups charge that TransCanada, the company proposing to build the pipeline, has used eminent domain to bully landowners and condemn private property.
…
http://www.thevindicator.com/news/article_9c84dcbe-5713-11e1-abb1-001871e3ce6c.html
Your friendly scribe,
starduster
http://totherow.tripod.com/
Getting swept up in U.S. Presidential politics can’t be high on the list of any Canadian corporation, but TransCanada Corp. isn’t backing down from its plans to build the Keystone XL oil sands pipeline.
…
http://business.financialpost.com/2012/02/14/transcanada-pushes-back-on-keystone-xl/?__lsa=bee37acb
My comment at the end of the story:
Keystone XL’s oil is to be shipped to the Gulf Coast, where it will be sold on the world market to the highest bidder. This will do not one thing to alleviate American dependence on other sources of foreign oil, as it is not slated to be used here. So many “news” sources fail to appreciate the truth of this matter. If you do your research like I have, you will understand that any attempt to prove Keystone is good for the US to help with our demand is a lie. All it will help, besides Trans-Canada’s bottom line, is oil company profits. The US is now a major exporter of oil products, becoming one last year by exporting more than it imports, for the first time in decades. This is a major reason why our gas prices continue to rise, and now average over $3.50 a gallon AGAIN.
2-16-12
Unbelievably one-sided and weak analysis. Hilarious how you throw in key phrases like “slush-fund” in some attempt to convince us that everything surely must be a conspiracy or motivated by giving favors to people like Warren Buffet. Is there anything you’ve written that isn’t just a “what-if” scenario based on you reading your anti-Obama bias into every action taking place? If I want that, I’ll just tune into the latest Republican debate, where they are discussing “important” topics like contraception, gay-marriage and abortion.
The need for jobs and oil are what tug at America today. We are currently in an economy in which unemployed or nearly-employed Americans count over 380 pennies to get just a gallon of gas. For most the people of my generation, it’s something we’ve learned to get accustomed to. After all, since I’ve been of legal driving age, gas prices have been as volatile as the stock market, and jobs have been scarce.
But here we have our quick-fix–The Keystone Pipeline. Let’s take oil from the oil sands in Canada and pipe it to refineries in the Midwest U.S. and the Gulf. It’s a perfect solution, right? It can create jobs, supply America with oil from a friendly ally and neighbor instead of the Middle East, and boost America’s overall economy. Right? Unfortunately, this debate has turned into a case of fact vs. myth, and the fact is all the seemingly good qualities of the Keystone Pipeline are simply myths.
Naturally, as all things involving government, this debate has also widely turned into a left vs. right, liberal vs. conservative, environment vs. business debate. But it’s more complex than that. And more simple at the same time.
The oil from Canada will not be used by America for America. The plan is to pipe that oil to the Gulf, where it would be exported to the highest-bidding country. If you’re arguing that this would help the U.S. economy, then perhaps the profit from the sale of oil is your best, yet only, angle.
But it would certainly lower these astronomical gas prices, right? Again, an appealing advantage from the onset, but research proves the completion of the Keystone Pipeline may, in fact, raise gas prices. For one, as it stands today, without easy access to the Gulf’s refineries, oil produced in the Dakotas and Canada stay in the Midwest, where refineries there can bid lower for the oil due to less competition. This also causes an “oversupply” in the Midwest, creating cheaper prices. However, if the pipeline were to reach the Gulf, refineries there would buy up oil at higher prices and deplete the “oversupply” in the Midwest, forcing prices at the refinery-level, and likely at the pump, to rise.
Then there’s the environmental price America could pay for the Keystone Pipeline. Oil produced from tar sands in Canada is more corrosive and acidic than conventional oil, and it has totally different chemical and physical properties. If it is spilled in the environment, the tar-based oil can cause significant health hazards and major cleanup problems. And you may say to yourself, “what are the chances this pipeline leaks?” Well, the current Keystone Pipeline leaked 12 times last year, totaling a 21,000 gallon-loss. And a similar pipeline that uses tar sands oil leaked 840,000 gallons of oil in Michigan, costing the region about $700 million dollars in losses and clean-up costs.
Still not convinced? How about job creation? That’s certainly a given with such a vast project, right?
Again, myths have blurred reality in this argument. In 2008, when TransCanada (the company responsible for the Keystone Pipeline XL) offered its plan to the U.S. government, it assured at-best 4,000 jobs, mostly temporary during the construction period. As the company’s plan has come under attack, the would-be jobs have skyrocketed to 20,000, a number many experts have quickly discounted.
So, as we look at what could be America’s short-term solution, we must think about long-term stability and, frankly, common sense. There’s a reason media tycoon and activist Ted Turner, actor Robert Redford and, of course, the Commander-in-Chief all disagree with the expansion of the Keystone Pipeline. Do not be fooled by the rhetoric of proponents of this short-term solution, if it’s even a solution, at all.
Remember, all that glitters is not gold. On the surface, the Keystone Pipeline may seem alluring, a quick-fix to such pressing issues in today’s economy, but underneath, with all the details, the Pipeline plan is as dirty as the oil that would travel through it.